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Felony indictment/failure to pay appraisal fees

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Jan 29, 2003
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Article in the San Antonio Express News from Saturday.

Grand jury indicts 'Flip This House' star

Web Posted: 02/22/2008 07:26 PM CST

Creighton A. Welch
Express-News Business Writer

Armando Montelongo Jr., 37, a star of A&E's “Flip This House,” was indicted Wednesday by a Travis County grand jury in Austin on theft of service charges for failing to pay appraisal fees. According to the arrest affidavit, Montelongo's company, Mandoman Management Inc., owes Austin-based Reliance Appraisal Service $4,125 for several home appraisals between December 2005 and September 2006.

“I finally decided he was going purposefully out of his way to avoid payments,” said Linda Gass, owner of Reliance Appraisal Service. “He just seems to think that he doesn't have to pay for his services.”

The charge is a state felony offense, and Montelongo could face up to two years in state jail if convicted. His hearing is set for March 4 .

“Our businesses are not connected,” said Rick Montelongo, Armando's brother and an S.A. builder and remodeler who is president and CEO of Montelongo Cos. “He's made his own choices, perhaps digging his own grave. Sometimes you get a black sheep, and that's what happened.”

The affidavit states that on Nov. 30, 2006, Gass mailed a letter demanding payment. On Jan. 22, 2007, Gass again attempted to collect payment through a debt collection agency. On Aug. 20, 2007, Armando contacted Gass to say he would send payment through his attorney. But Gass never has been paid, according to the court document.

From left, David, Melina, Veronica and Armando Montelongo, when they were all co-starring on the second season of 'Flip This House' on A&E.
Armando Montelongo did not return several requests for comment.

In September 2007, Bexar County and the North East Independent School District sued his Montelongo Acquisitions Inc. for $5,913.13 in delinquent taxes on a property in the city of Windcrest. The case status is still pending.

A lawsuit filed in June 2007 accuses Montelongo's brother David Montelongo of breach of contract and fraud related to a real estate investment in Schertz. The lawsuit alleges that his company, Montelongo Developments LLC, took $5,000 in earnest money and $500 in option money from a California investor for a retail center, but that David Montelongo never signed a partnership agreement on the land. The case is still pending.

David and Armando co-starred with their respective wives — Melina and Veronica — in the second season of “Flip This House.” David and Melina left after that season, but Armando and Veronica appeared in the show's third season.

Armando and Veronica also sell a series of e-books called “Flip It Now” and a home study course on CD.

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